Greenwich saw a strong second quarter surge in home sales after a slow start due to bad weather. The Warren Group says Connecticut real estate is in a slump, with home sales and prices continuing to fall.

Greenwich saw a strong second quarter surge in home sales after a slow start due to bad weather. The Warren Group says Connecticut real estate is in a slump, with home sales and prices continuing to fall.

Photo: Contributed Photo, Contributed Photo

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The home sales market in Ridgefield was solid in the second quarter with the average sales price in the $800,000 range. This five-bedroom on three acres at 99 Minuteman Road in Ridgefield is on the market for $895,000 and is being offered by the Ridgefield office of Berkshire Hathaway Home Services of New England.

The home sales market in Ridgefield was solid in the second quarter with the average sales price in the $800,000 range. This five-bedroom on three acres at 99 Minuteman Road in Ridgefield is on the market for

A home for sale at 151 Woodway Road in Darien, Conn. William Pitt and Julia B. Fee SothebyâÄôs International Realty reported that second quarter home sales were down slightly compared with the same period last year, but Darien home sales remained strong.

A home for sale at 151 Woodway Road in Darien, Conn. William Pitt and Julia B. Fee SothebyâÄôs International Realty reported that second quarter home sales were down slightly compared with the same period

A home for sale at 8 Sherry Lane in Darien, Conn. William Pitt and Julia B. Fee SothebyâÄôs International Realty reported that second quarter home sales were down slightly compared with the same period last year, but Darien home sales remained strong. less

A home for sale at 8 Sherry Lane in Darien, Conn. William Pitt and Julia B. Fee SothebyâÄôs International Realty reported that second quarter home sales were down slightly compared with the same period last ... more

Pent-up demand from the first quarter led to an 11.3 percent decrease of days on market to 140 days with buyers entering the housing market at all price points, according to Candace Adams, president and CEO of Berkshire Hathaway Home Services New England Properties.

Overall, the average cost for Connecticut's homes remained unchanged year over year. Signed contracts for single family homes decreased 19.6 percent compared with last year, but increased 13.3 percent from last quarter.

Connecticut has seen a 6.7 percent increase in the number of sold luxury residences in 2014 compared with 2013, characterized by sales over $2 million. Year-over-year sales have shifted toward more expensive homes with the percent of sold homes over $5 million up from 7.7 percent of the market share in second quarter 2013 to 12.8 percent this quarter, Berkshire Hathaway reported.

"Sellers waited to put properties on the market until the weather improved this year, with a majority of the new inventory coming to market in June," Adams said. "The inventory exists in the luxury market for the highly discriminating buyer with over 1,000 homes priced over $2 million currently on the market, approximately 80 percent of them located in Fairfield County."

Overall data for the county is giving Adams and others in the real estate market reasons for optimism, but for Sue Coyle, a partner in the Shelton residential real estate firm Real Estate Two, the sunny days that Adams predicts are shrouded by some dark clouds.

"People are still concerned about the economy," she said, commenting that potential home buyers are standing on the sidelines. "They need to take advantage of the low interest rates. Mortgages are a little easier to get than they were ago. It's a great time to buy. I really, really believe that. The inventory is better. There's a lot to choose from."

While there is interest in greater Shelton in homes priced up to $300,000, owners of higher-priced homes are waiting long periods to find a buyer, Coyle said.

"With $20,000 to $30,000 you can buy a house rather than rent. But higher priced homes are having a much harder time selling. Homes are on the market much longer than last year," she said, estimating that a home was on the market 60 to 90 days in 2013 compared with 90 to 120 days this year. "I think people are afraid."

Paul Breunich, president and CEO of William Pitt and Julia B. Fee Sotheby's International Realty, also saw a decline in second quarter sales and dollar volume, compared with the second quarter of 2013. But he said 2013's second quarter was the strongest quarter in many years.

Fairfield County experienced an 8 percent decline in closed unit sales and a 6 percent decline in closed dollar volume compared to the second quarter of 2013, according to Breunich. But closed days on market have dipped to their lowest level in three years, at 95 days.

"Properties that are priced aggressively and beautifully presented are those that are typically finding their buyers in this time frame," Breunich said. "The fundamentals are there. Consumer confidence is at its highest point since January of 2008, and unemployment levels are at their lowest since 2007."

While on an overall basis Fairfield County housing activity has leveled off this quarter, luxury sales have experienced an uptick in activity, he said, as sales of homes priced in the $3 million to $4.99 million range, as well as homes valued $5 million and higher have risen by 25 percent and 33 percent, respectively, versus the second quarter of 2013.

Year-to-date there have been 54 sales of homes valued between $3 million and $4.99 million, which represents a 42 percent increase, according to Pitt Sotheby's data, and there have been 33 sales over $5 million in 2014, which is a 27 percent improvement over a year ago.

In the ultra-luxury segment, many of the sales are in the $6.5 million to $9 million range and are spread across multiple towns.

Greenwich continues to dominate the upper-end market with 15 sales this quarter and 25 for the year to date. New Canaan, Darien and Westport represented the vast majority of other towns with a meaningful number of high-end sales during 2014.

"There's a lot of activity in higher priced homes again. That's economically driven," said Nick Perna, a Ridgefield-base economist and economic adviser to Waterbury-based Webster Bank. "If you're doing well, you're doing very well. The improvement in luxury home sales is an indication of the growing wealth of high-end wage earners. Corporate profits are up over 50 percent before the start of the recession, while jobs are up only slightly. We have an increasing inequality in the U.S., and this is a manifestation of that."

Perna was heartened to learn that there is an improvement in inventory and prices, albeit slight.

"Days on the market are falling which is a very good sign," he said. "It reflects that more people are willing to put their toes in the water. Prices are rising but not terribly fast." Perna added that the gradual housing market improvement in the county is a reflection of the improving job market.

He cited June state Labor Department statistics showing job growth of 1.8 percent in the Stamford-Bridgeport region in June, compared with June 2013, and a 0.7 percent improvement in the Danbury area, compared with an overall state job growth of 0.3 percent.

"It says that Fairfield County is outperforming the state as a whole," Perna said.